PNB scam and state-owned banks: The writing on the wall

Any of the Indian private sector banks will be happy to step in and help, including taking some of these banks from the government's protective hands, if asked. Why not take help, when it is so close

Punjab National Bank’s Valentine’s Day disclosures about diamonds turning to coal is yet another wake-up call that the state-owned banks need a cure for. What is unsettled is what ails these banks. And till this question is resolved, there can be no repair.

There are worrying signs that the debate is being misdirected by focusing on the wrong issues. For example, that because this happened in a government-owned bank, there has been no run on the bank or the banking system. The conclusion this set wants you to reach is that government ownership is not just desirable, but the needed lifeblood